Tokyo core inflation slows to 2.4% in March

Japanese government data showed that Tokyo's core consumer price index (CPI), considered a leading indicator of national inflation in Japan, rose 2.4% year-on-year in March, in line with market expectations, but slightly slower than February's 2.5%, reflecting the cost of raw materials. Rising pressure has eased.

As for the CPI excluding the impact of fresh food and fuel costs in March, it rose 2.9% year-on-year, which was also lower than the 3.1% increase in February.

Last week, the Bank of Japan ended eight years of negative interest rate policy and announced its first interest rate hike since 2007. The benchmark interest rate was raised from minus 0.1% to a range of 0 to 0.1%, and the Yield Curve (YCC) control policy was revoked, and Stop buying Japanese exchange-traded funds (ETFs) and Japanese real estate trusts (J-REITs). Bank of Japan Governor Kazuo Ueda said the central bank may raise interest rates again if inflation exceeds expectations or the risk of upward price increases increases significantly.

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